Question
A factory has a $150,000 capital budget and these investment opportunities: a) Calculate and then enter in the above table the IRR of each project.
A factory has a $150,000 capital budget and these investment opportunities:
a) Calculate and then enter in the above table the IRR of each project.
b) Determine which project(s) above should be funded.
c) What is the opportunity cost of capital?
| Project | First Cost | Annual Benefits | Life | Salvage Value | IRR (%) =? |
| A | $50,000 | $13,500 | 10 yr | $5,000 |
|
| B | $50,000 | $9,000 | 5 yr | $10,000 |
|
| C | $50,000 | $13,250 | 8 yr | $0 |
|
| D | $50,000 | $9,575 | 5 yr | $6,000 |
|
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The Handbook Of Sentiment Analysis In Finance
Authors: Gautam Mitra, Xiang Yu
1st Edition
1910571571, 978-1910571576
